The business of providing merchant loans is relatively new. The first provider opened their doors less than ten years from when this article was written. The industry has been growing exponentially ever since.

More than likely, the current financial crisis has played a major role as to why merchant cash advances are gaining in popularity. Business owners are finding it more and more difficult to get the short term loans they are accustom to. They depend on these loans to keep a steady cash flow and to keep their business running.

Year to date we have seen 6 major national SBA lenders come back to the market. That is very encouraging news, despite all of the continued talk of the recession and how bad it might get.

In these troubled economic times, the question is whether any bank or financial institution is making loans to small businesses. This article will discuss if the federal government will bail out a business if it cannot pay back its business loan under the the new Stimulus Bill.

Commercial hard money lenders, seem to be content with their existing loan portfolios as many are slow to react to new loan requests and are, not surprisingly cherry picking the very best of hard money requests. Of the reputable lenders we work with, many have confirmed this and seem to be focused on their existing portfolio and are trying to avoid foreclosures or losses.

Commercial construction loans have taken perhaps the hardest “beating” in the current credit crisis. Bottom line, banks do not want too or cannot take on the additional risks that come with construction loans.

With change comes opportunity. We are seeing many, very interesting developments with commercial real estate loans. One happens to be banks offering to reduce balances owed and waive any prepayment penalties in an effort to entice strong borrowers to refinance their debt.

When the beneficiary of a credit who is not the actual supplier of goods wishes to open a second credit in favour of his supplier, the first credit not being transferable, he may request a bank to issue a back to back credit (BBC), i.e. one which uses the first credit or master credit (MC) as sole security. BBC resembles transferable credits (TC) in a number of particulars but it is essential to recognize that unlike transferable credits, the two transactions under BBC are quite separate.

In today’s rough economy, businesses are having more difficulty obtaining the financing they need. Many of them, though, contribute to their problems by their own behavior. This article points out some of the more harmful things that loan applicants do when dealing with lenders. Avoiding these pitfalls will help ensure that business owners will give themselves a reasonable shot at getting their applications approved.

I have seen almost every conceivable type of business apply for a merchant cash advance. Some of these businesses include; restaurants, grocery stores, beauty salons, garages, tires stores and franchises just to name a few.